The present invention discloses a system and associated method for monitoring and reporting business activities and productivity of users in an enterprise environment. In conventional productivity monitoring methods, time spent by the users performing the business activities on an application program of a local computer system and volume of work performed are not monitored or reported. Conventional productivity monitoring methods do not apply work standards or work schedules for the business activities to evaluate measured time and volume of the business activities on the local computer system in calculating productivity of the users. Because of limited functionalities, conventional productivity monitoring methods are not capable of accurately monitoring and reporting productivity of users in specific enterprise environment.